{"id":1,"date":"2018-07-23T13:03:51","date_gmt":"2018-07-23T13:03:51","guid":{"rendered":"http:\/\/corpbiz.io\/learning\/?p=1"},"modified":"2025-01-24T17:59:16","modified_gmt":"2025-01-24T12:29:16","slug":"private-limited-company-incorporation-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/private-limited-company-incorporation-in-india\/","title":{"rendered":"Steps for Private Limited Company Incorporation In India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A Private Limited Company is an\nentity registered under&nbsp;<em><strong>The Companies Act, 2013<\/strong><\/em>. The name\nitself suggests that the liability&nbsp;<em><strong>of the members is limited<\/strong><\/em>. The\nMinistry of Affairs (MoA) of Government of India mandates Private Limited\nCompany Incorporation. The&nbsp;<a href=\"https:\/\/corpbiz.io\/company-registration\" title=\"Private Limited Company Registration in India\"><strong>Private Limited Company Registration<\/strong><\/a>&nbsp;is necessary to enjoy the\ntax benefits incorporated by the Ministry of Affairs. In this article, we will\ndiscuss the procedure followed for Private Limited Company Incorporation in\nIndia.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/private-limited-company-incorporation-in-india\/#What_is_a_Private_Limited_Company_and_its_Characteristics\" >What is a Private Limited Company and its Characteristics?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/private-limited-company-incorporation-in-india\/#What_are_the_Steps_followed_for_Private_Limited_Incorporation_in_India\" >What are the Steps followed for Private Limited Incorporation in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/private-limited-company-incorporation-in-india\/#What_Documents_are_Required_for_Private_Limited_Company_Incorporation_in_India\" >What Documents are Required for Private Limited Company Incorporation in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/private-limited-company-incorporation-in-india\/#What_is_the_Benefits_of_Private_Limited_Company_Incorporation_in_India\" >What is the Benefits of Private Limited Company Incorporation in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/private-limited-company-incorporation-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Private_Limited_Company_and_its_Characteristics\"><\/span>What is a Private Limited Company and its Characteristics?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Private Limited Company is the most popular type of business entity in India. A Private Limited Company is a type of company which offers limited liability to its shareholders with certain restrictions imposed on the ownership. Legal Protection is also provided to the shareholders of the Private Limited Company. <\/p>\n\n\n\n<p>The Ministry of Affairs has made the process of Private Limited Company Incorporation very simple now; hence leading an increase in the ease of doing business in India. The&nbsp;Characteristics&nbsp;of the Private Limited Company are as follows:-<\/p>\n\n\n\n<ul>\n<li>According to the provisions of the Companies Act, 2013 a\u00a0<em><strong>minimum <\/strong><\/em>of 2 members and a <em><strong>maximum of 200<\/strong><\/em>\u00a0required for a Private Limited Company.<\/li>\n\n\n\n<li>The\u00a0<em><strong>Liability of each shareholder is limited<\/strong><\/em>. This means that if the      Company faces loss, the shareholder is liable to sell their assets for payment.<\/li>\n\n\n\n<li>The Company keeps on existing in the eyes of the law in case of death, the bankruptcy of member or insolvency.<\/li>\n\n\n\n<li>No need to maintain an Index of Members<\/li>\n\n\n\n<li>Only 2 Directors are needed for a Private Limited Company Incorporation.<\/li>\n\n\n\n<li>No need to issue a prospectus of the Company.<\/li>\n\n\n\n<li>A minimum subscription is needed for carrying on the business.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Steps_followed_for_Private_Limited_Incorporation_in_India\"><\/span>What are the Steps followed for Private Limited Incorporation in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Government for <strong><em>Ministry of Corporate Affairs<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Ministry_of_Corporate_Affairs\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> shall for the purpose of promoting the India\u2019s Ease of Doing Business (EODB) initiatives, has notified and deployed a new Web Form called \u2018SPICe+\u2019. SPICe+ shall put forward 10 services by the three Central Govt Ministries &amp; Departments that includes the Ministry of Labour, Ministry of Corporate Affairs &amp; Department of Revenue in the Ministry of Finance and also one Maharashtra State Government. The incorporation of all the new companies\u2019 from 15th February 2020 through SPICe+ would be compulsorily required to submit an application for opening company\u2019s Bank account in the AGILE-PRO linked web form.<\/p>\n\n\n\n<p>The purpose of introducing this web form is for saving the time, extra procedural requirement, and high costs for starting a business in India and this was applicable with effect from 15th February 2020 for all new company incorporations. The earlier RUN service would be applicable only for \u2018change of name\u2019 of an existing company.<\/p>\n\n\n\n<p><em><strong>The process followed for Private Limited Company Incorporation is as follows:<\/strong><\/em><\/p>\n\n\n\n<ul>\n<li>SPICe+\nshall be an integrated Web Form.<\/li>\n\n\n\n<li>SPICe+\nshall be divided into two parts : <\/li>\n<\/ul>\n\n\n\n<p><strong>Part A-<\/strong> reservation of name for new companies\nand <\/p>\n\n\n\n<p><strong>Part B &#8211; <\/strong>offering a bunch of services with the procedural requirement given below:-<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"580\" height=\"482\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/image.png\" alt=\"process followed for Private Limited Company Incorporation\" class=\"wp-image-26597\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/image.png 580w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/image-300x249.png 300w\" sizes=\"(max-width: 580px) 100vw, 580px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\">Name Approval &nbsp; <\/h3>\n\n\n\n<p>The first\nstep to be followed in Private Limited Company Registration is&nbsp;<em><strong>Filing for Name Reservation through the incorporation\nform i.e. SPICE+ (Part A).<\/strong><\/em>&nbsp;There should be two names filed\nand the Registrar will choose between the two names and will approve one. The\nRegistrar can reject both names and can ask the applicant for re-submission of\nNew Names. The filing fee for the same is Rs.1000 only.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">DSC and DIN <\/h3>\n\n\n\n<p>The Registration Process of the Company is online, so&nbsp;<em><strong>the <a href=\"https:\/\/corpbiz.io\/dsc-registration\" title=\"DSC Registration\">Digital Signature Certificate<\/a> (DSC<\/strong><\/em>) is required. The DSC can be obtained by the Authorized Agency recognized by the Government of India. DSC is mandatory for all the subscriber and witnesses mentioned in the Memorandum and Articles of Association. <\/p>\n\n\n\n<p>DIN is\nallotted to an individual to act as director in a company.Any person (not\nhaving DIN) proposed to become a Director in a new Company can apply for&nbsp;<em><strong>Director Identification Certificate (DIN) through\nthe&nbsp;<\/strong><\/em><em><a href=\"https:\/\/corpbiz.io\/learning\/new-spice-plus-form-launched-by-mca\/\"><strong>SPICe+ Form<\/strong><\/a><strong>.<\/strong><\/em>&nbsp;Only\nthree directors without DIN can apply for DIN in SPICE+ part B.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">MoA and AoA Drafting<\/h3>\n\n\n\n<p>The&nbsp;<a href=\"https:\/\/corpbiz.io\/learning\/alteration-of-memorandum-of-association-moa\/\"><strong>Memorandum of&nbsp;<\/strong><\/a><a href=\"https:\/\/corpbiz.io\/learning\/alteration-of-memorandum-of-association-moa\/\"><strong>Association<\/strong><\/a><em><strong>&nbsp;<\/strong><\/em><strong>(MoA) and the Articles of Association (AoA) are\nvital documents<\/strong><strong>&nbsp;<\/strong>for a\nPrivate Limited Company Incorporation in India. The MoA and AoA are the\ndocuments which clarify the scope of operation and define how the Company will\nbe operated. Both documents are referred to as the Constitution of the Company.\nThese documents explain the relationship of the Company with its shareholders.\nNow, these documents are in electronic form, i.e. eMoA and eAoA. These\ndocuments can be filed online through SPICe+ forms.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Registered Office<\/h3>\n\n\n\n<p>It is important for the company to mention the address of Registered\noffice at the time of filing the SPICE+ Part B or a company can establish\nwithin 15 days of the approval of SPICE+ Form its registered office place or\nshall intimate the address within 30 days through e-form INC-22<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Application for Company\nIncorporation <\/h3>\n\n\n\n<p>Once all the\ndocuments are completed, the application for Private Limited Company\nIncorporation is made through the SPICe+ Part B Form which should be\naccompanied by SPICe_MOA and AOA, AGILE-PRO, URC-1 and INC-9 and fill other\nrequired details like director\u2019s, subscriber\u2019s and company\u2019s&nbsp; required details with the allotment of PAN\nand TAN. After the verification of the documents by the concerned Registrar of\nCompanies, the Certificate of Incorporation will be granted for the Private\nLimited Company.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/procedure-for-registration-of-private-limited-company-india\/\">Private Limited Company Registration Procedure in India<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Documents_are_Required_for_Private_Limited_Company_Incorporation_in_India\"><\/span>What Documents are Required for Private Limited Company Incorporation in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>In case the Director is an Indian National<\/strong><\/em><\/p>\n\n\n\n<ul>\n<li>Identity Proof of Proposed Directors, i.e. Permanent Account Number (PAN) Card.<\/li>\n\n\n\n<li>Address Proof of Proposed Directors, i.e. Adhaar Card, Ration Card, Driving License.<\/li>\n\n\n\n<li>Proof of Residence of Proposed Directors, i.e. Bank Statement, Electricity Bill, Phone Bill.<\/li>\n\n\n\n<li>Copy of utility bills not older than 2 months<\/li>\n\n\n\n<li>Board Resolution<\/li>\n\n\n\n<li>Digital Signature Certificate of Directors<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/corpbiz.io\/din-under-mca\" title=\"Director Identification Number\">Director Identification Certificate<\/a><\/strong> of Directors<\/li>\n\n\n\n<li>Proof of appointment of Authorized Signatory for GSTN <\/li>\n<\/ul>\n\n\n\n<p><em><strong>In case if the Director is a Foreign National<\/strong><\/em><\/p>\n\n\n\n<ul>\n<li>Identity Card of Proposed Director, i.e. Passport.<\/li>\n\n\n\n<li>Proof of Residence of Proposed Director, i.e. Residence Card, Drivers License, Passport.<\/li>\n\n\n\n<li>Proof of Residence of Proposed Directors, i.e. Bank Statement, Electricity Bill, Phone Bill.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Benefits_of_Private_Limited_Company_Incorporation_in_India\"><\/span>What is the Benefits of Private Limited Company Incorporation in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>The benefits associated with registering a private Limited Company Incorporation in India are as follow:-<\/strong><\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Separate Legal Entity<\/h3>\n\n\n\n<p>The Company is a legal entity and a juristic person established under the&nbsp;Companies Act, 2013. The shareholders of the Company have no personal liability to the creditors for Company debts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Perpetual Succession<\/h3>\n\n\n\n<p>In case of death or insolvency, the Company exists\nin the eyes of the law forever. Until it is legally dissolved there will be\nuninterrupted existence of the Company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Owning<strong> <\/strong>Property<\/h3>\n\n\n\n<p>Being an artificial person, the Company can\nacquire, alienate, hold, and enjoy the property in its own name.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Foreign<strong> <\/strong>Investment<\/h3>\n\n\n\n<p>\n\nThrough Foreign Direct Investment (FDI), foreign investments are\naccepted, which helps in the building of the economy of the country.\n\n\n\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Private Limited Company is the most popular type of corporate entity for starting a company. We at&nbsp;<a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a>&nbsp;have experienced and expert professionals to help you in the process of incorporation of your Private Limited Company Incorporation by strictly following the mandated process of the Government and by adhering to the guidelines of Private Limited Company Incorporation. Our professionals will plan ideally and will ensure the successful completion of the process.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/advantages-of-llp-over-private-limited-company\/\">Advantages of LLP (Limited Liability Partnership) over Private Limited Company<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Private Limited Company is an entity registered under&nbsp;The Companies Act, 2013. The name itself suggests that the liability&nbsp;of the members is limited. The Ministry of Affairs (MoA) of Government of India mandates Private Limited Company Incorporation. The&nbsp;Private Limited Company Registration&nbsp;is necessary to enjoy the tax benefits incorporated by the Ministry of Affairs. In this [&hellip;]<\/p>\n","protected":false},"author":33,"featured_media":26598,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[154],"tags":[5],"acf":{"service_id":"1"},"authorName":"Kandarp Vanita","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/image_2021_02_01T09_09_44_024Z.png","authorDescription":"Kandarp Vanita has done masters in Corporate and Commercial Law from WB National University of Juridical Sciences. She has 3 yrs of experience in drafting legal documents &amp; dissertations. Being a curious reader, she is also passionately into providing legal backups and comprehensive understandings in every aspect of Law to the firms.","postViews":9453,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=1"}],"version-history":[{"count":30,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1\/revisions"}],"predecessor-version":[{"id":68576,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1\/revisions\/68576"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/26598"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=1"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=1"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=1"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}